ESMA Recommends Delay of Mandatory Buy-ins09.28.2021
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has written to the European Commission (EC) regarding the implementation of the Central Securities Depositories Regulation (CSDR), urging it to consider a delay of the mandatory buy-in regime.
AFME welcomes this positive development. The concerns identified by ESMA reflect those identified in our letter of July 2021. It is critical that the buy-in regime is not implemented in its current form. https://t.co/eMOvoEuzVN
— AFME (@AFME_EU) September 27, 2021
As the final EC legislative proposal for the review of CSDR, possibly including changes to the buy-in regime, is not expected before the end of this year, ESMA is in favour of delaying the entry into force of the buy-in requirements – scheduled on 1 February 2022 – while applying the other settlement discipline requirements, such as settlement fails reporting and cash penalties regime, as planned.
ESMA therefore considers it crucial that the EC and the co-legislators clarify their political intentions around the review of the settlement discipline regime and consider whether to postpone the buy-in regime implementation as soon as possible.
Removal of the buy-in obligation from the SDR renders Eurex STS' business unviable.
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The settlement discipline regime will be implemented in February 2022.
CSDR settlement discipline measures are due to be implemented in February 2022.